PayPal (PYPL) Stock Crash Over? | Summary and Q&A

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April 27, 2022
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The Investor Channel
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PayPal (PYPL) Stock Crash Over?

TL;DR

PayPal's stock has experienced a significant decline, down over 57% year-to-date. However, with low valuation metrics and the potential for revenue growth, there may be an opportunity for investors.

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Questions & Answers

Q: How has PayPal's stock performance been?

PayPal's stock has been in a sharp decline, down over 57% year-to-date. It has reached a five-year low in terms of price-to-earnings and price-to-sales ratios.

Q: What are Wall Street's expectations for PayPal's revenue growth?

Wall Street analysts are projecting a 20% year-over-year growth for PayPal's revenue, although this may be impacted by potential recessions and economic conditions.

Q: How has PayPal's financial performance been in the most recent quarter?

PayPal's net revenues grew by $450 million compared to the previous period, but expenses also increased, resulting in a decrease in operating income. Net income was $711 million.

Q: What are the potential risks and rewards of investing in PayPal?

There is a risk that PayPal may not meet revenue growth expectations, which could cause the stock to decline further. However, if the company exceeds expectations, there may be a significant rally in the stock.

Summary & Key Takeaways

  • PayPal's stock has been on a continuous decline since August of last year and is currently trading at around $86 per share.

  • The company's revenue for the quarter was $6.5 billion, showing a 7.8% year-over-year growth, beating expectations by $90 million.

  • Expenses have increased, leading to a decline in operating income, while the balance sheet shows a more positive outlook with increased cash and customer accounts.

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